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The Effects of Workplace Union on the Gender Wage Gap

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  • M. LECLAIR

    (Insee)

  • P. PETIT

    (Maison des Sciences Economiques,Université Paris 1 Panthéon-Sorbonne)

Abstract

The Roudy Law in 1983 tried to promote wage equality between men and women by reinforcing union power in this field. A reexamination of CMOSS data from 1992 allows measuring what was its impact after nearly ten years of implementation. The methodology consists in computing how the presence of union representatives at the workplace affects wage gaps between men and women of similar characteristics. Taking into account selection bias and unobserved individual and establishment heterogeneity, our results show a positive impact of unions on wages for both men and women working full time in the industrial sector. This union premium is all the more important as the worker earns a low wage. Nevertheless, we find no significant impact of unions on the unexplained gender wage gap: unions tend to increase both mens and womens wages in similar proportions.

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File Function: Document de travail de la DESE numéro G2003-10
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Bibliographic Info

Paper provided by Institut National de la Statistique et des Etudes Economiques, DESE in its series Documents de Travail de la DESE - Working Papers of the DESE with number g2003-10.

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Date of creation: 2003
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Handle: RePEc:crs:wpdeee:g2003-10

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Related research

Keywords: trade union; gender wage gap; gender discrimination; linked employer-employee French data;

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References

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  1. David Card, 1998. "Falling Union Membership and Rising Wage Inequality: What's the Connection?," NBER Working Papers 6520, National Bureau of Economic Research, Inc.
  2. Dominique Meurs & Sophie Ponthieux, 2000. "Une mesure de la discrimination dans l'écart de salaire entre hommes et femmes," Économie et Statistique, Programme National Persée, vol. 337(1), pages 135-158.
  3. Main, Brian G M & Reilly, Barry, 1992. "Women and the Union Wage Gap," Economic Journal, Royal Economic Society, vol. 102(410), pages 49-66, January.
  4. Denise J. Doiron & W. Craig Riddell, 1994. "The Impact of Unionization on Male-Female Earnings Differences in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 29(2), pages 504-534.
  5. Charles Brown & James L. Medoff, 2003. "Firm Age and Wages," Journal of Labor Economics, University of Chicago Press, vol. 21(3), pages 677-698, July.
  6. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  7. Card, David, 1996. "The Effect of Unions on the Structure of Wages: A Longitudinal Analysis," Econometrica, Econometric Society, vol. 64(4), pages 957-79, July.
  8. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  9. Françis KRAMARZ & Francis KRAMARZ & Louis-Paul PELÉ, 1996. "Wage Inequalities and Firm-Specific Compensation policies in France," Annales d'Economie et de Statistique, ENSAE, issue 41-42, pages 369-386.
  10. Booth, Alison L, 1984. "A Public Choice Model of Trade Union Behaviour and Membership," Economic Journal, Royal Economic Society, vol. 94(376), pages 883-98, December.
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